<p>I'm curious to know what the real cost of a private university education really is.</p>
<p>I've been receiving some literature from the finance department of the private college I'll be attending (full cost is roughly 50K a year, all in, room, board, etc.) and it states that the true cost of the education there is only partially covered through tuition (the rest being gifts from alumni, invested funds, etc.)</p>
<p>So what is the true cost really? </p>
<p>And how can people complain if the value they receive (from a monetary standpoint) is greater than what they're paying even if it is full sticker?</p>
<p>I guess it depends on how the "true cost" is calculated--overhead of buildings, research being conducted on campus, extra-curricular offerings available thru campus, outreach & internship programs, etc. Which of these should be included? Excluded?</p>
<p>People can and will complain when the cost appears to be or is a barrier to them getting what they want and/or make them make choices they would rather not have to make.</p>
<p>The price of education keeps rising at a rate that is much higher than the rest of the cost of living and it's tough for wages or much of anything else to keep up. That also makes those of us paying bills complain.</p>
<p>If you amortize the cost of the campus arboretum or the 18-hole golf course over a small student body, or the salary paid to the Nobel Prize winner who sets foot on campus twice a year, you can make it seem like the true cost is very high indeed.</p>
<p>cost of college is difficult to calculate because you should also calculate the lifestyle of the students. is it a campus where students dress up for class and go out to eat a lot. is there a culture of wealth on campus?</p>
<p>I agree with previous posters -- "It depends." Cost of engineering and science laboratories included for a Creative Writing student? Cost of student parking garage included for a car-less student? Cost of 24-hour security included for a student that lives off-campus? Does the cost change when a student dumps a 30-student honors class to take Intro Chemistry in a hall with 750 other freshmen?</p>
<p>The cost of any education, private or public, is only partly covered by tuition. The difference is that public institutions receive financing from the state government while private institutions do not. Since private institutions do not receive tax money from the state, the costs not covered by tuition then have to be covered by gifts/grants, etc.</p>
<p>The costs include faculty salaries, overhead on buildings but also construction and renovation, and don't forget advertising and fundraising. I am always interested in the amount spent on the development office. I have found that at some institutions the salaries paid to the development office are sometimes higher than the amount of the gifts they generate. This is more true at public institutions which are relatively new to the fundraising game as more and more states institute budget cuts. Private institutions have always had to live by the gifts they could generate.</p>
<p>Private institutions publish an annual report which will detail a lot of this information (maybe it's online). Gift giving by alumni is one important measure of student satisfaction with the school.</p>
<p>Yes, the cost of education has to take into account the costs of faculty and staff salaries, building overhead and maintenance, insurance, benefits,etc. You also have to amortize the cost of enrollment services, marketing, student services , such as tutoring, gyms etc. This cost also has to be amortized over the student body. Thus, a school such as Michigan, might not have as high a per student cost as that of a much smaller school whose stdent body has to amortize similar fixed costs of buildings, admissioin, marketing etc.</p>
<p>Also, I have seen at many schools that at least 10-20% of the cost goes to scholarships ( whether they be need or merit based.) Syracuse University pre-college program had 20% of their kids going for free,
while the rest paid $5000.</p>
<p>Finally, many top universities have free tuition for graduate students called fellowships. Someone has to subsidize these scholarships,which usually is done by the undergraduates unless there is a very large endowment.</p>
<p>Canadian Government, Endowment, and private corp funding paid for S, MS program. Thankyou, CANADA. He even got a extra kicker in buying power when USD$ drop in relation to CND$.</p>